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October 7, 2015 Volume 62
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IADA 2015 SECOND ANNUAL DEAC EVENT
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The Illinois DEAC Team and IADA hosted its second annual DEAC Event on September 24th in Springfield for contributors of DEAC. The afternoon began with a Washington Briefing and Industry Update followed by a reception and dinner at the Sangamo Club.
Members of the President's Club were recognized including: Bill Abbott, Jaime Auffenberg, Michael Auffenberg, Bob Brady, Tom Dolan, Bob Federico, Daniele Federico, Kathy Federico, Jill Green, Ray Green, Gary Knight, Susan Langheim, Mike Miller, Joe O'Brien, Bob Ridings, Jack Schmitt, and Dave Taylor.
 The Illinois DEAC Event was made complete by speaker, Peter Welch, NADA President. Peter has been leading NADA through its most pressing issues and tackling the challenges facing new-car and -truck dealers to date. He has been keenly involved in the legal and regulatory issues that can imminently affect dealers across the nation. Before coming to NADA, Peter was the president and chief executive officer of the California New Car Dealers Association (CNCDA) since 2003. Prior to his election as president and CEO, Peter served as the CNCDA's Director of Government and Legal Affairs since 1990. He played a vital role in managing its government affairs office, including legal, legislative and regulatory affairs. We were thrilled to have him join us for this event!
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DEALER LEADERS ATTEND WASHINGTON CONFERENCE
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New auto dealer leaders from across the U.S. were in DC this past week to attend NADA's Annual Washington Conference where they were brought up to speed on the national dealer legislative agenda, which they in turn took to their members in Congress. Regulatory overreach by federal agencies aimed at dealers was a recurring topic this year as members of Congress, a commissioner from the Federal Trade Commission (FTC) and Washington political pundits, the like of Charlie Cook, addressed the conferees. The conference itself was comprised of dealer association representatives from the national boards of NADA, NAMAD and AIADA, along with dealer group leaders from state and metropolitan dealer associations.
Representing Illinois at the conference were: IADA Chairman Dave Taylor, Taylor Chrysler-Dodge-Jeep-Ram, Bourbonnais, IADA Vice Chairman, Sam Roberts, Roberts Motors, Inc., Alton; IADA Director of Legislative Affairs, Joe McMahon, Springfield and Meghan Sander Davlin, IADA Director of Communications. Attending from CATA were: CATA Chairman Mike McGrath Jr. Chicago; CATA Director John Alfirevich, Tinley Park; NADA Director Mark Scarpelli, Antioch and CATA President Dave Sloan.
IADA and CATA hosted a Washington Reception at the Capitol Hill Club for Republican Representatives Mike Bost R-12, Carbondale; Rodney Davis R-13, Taylorville; Bob Dold, R-10, Kenilworth; Randy Hultgren R-14, Wheaton; Adam Kinzinger R-16 Channahon; Darin LaHood, R-18, Dunlap; Peter Roskam, R-6, Wheaton; and John Shimkus R-15, Collinsville.
Individual meetings were also held with Illinois Senator Mark Kirk, R-Highland Park; Cheri Bustos, D-17, East Moline; Mike Quigley, D-5, Chicago; and Robin Kelly's D-2, Chief of Staff.
Illinois Senators and Representatives were asked to support legislation being pushed by NADA to rescind the Consumer Financial Protection Bureau's flawed auto finance guidance and make the bureau more transparent and accountable when it issues future auto finance guidance.
The Senators and Representatives were also asked to oppose legislation that would ground all vehicles under open recall at dealerships and instead support a more rational approach. |
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NADA RUNNING THE FOLLOWING ADS IN POLITICAL PUBLICATIONS
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** A message from the National Automobile Dealers Association (NADA): Consumers deserve to be able to seek the best deal on their auto loan. But a CFPB proposal would raise consumer prices and limit choices, by preventing local dealerships from being able to discount interest rates for their customers. Learn how consumers routinely save money when financing through local dealerships: www.nada.org/autofinance **
** A message from the National Automobile Dealers Association (NADA): Consumers routinely save money when financing their vehicle at local dealerships. Because dealers can shop a customer's loan application to dozens of lenders, they can usually find better rates than consumers can on their own. Dealers can also offer discounts that lead to even lower interest rates and greater savings. But the CFPB wants to eliminate dealer discounts, making car loans more expensive for consumers. The Wall Street Journal estimates that the CFPB's proposed changes could cost some consumers nearly $600 over a four-year loan.
When you're purchasing a new car, you should have every financing option available to you. No government institution should deny you that - that's not what Washington is supposed to do.
Learn how consumers can save money through dealer-assisted financing at: www.nada.org/autofinance **
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CFPB TO HOLD PUBLIC HEARING ON ARBITRATION
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The federal Consumer Financial Protection Bureau is taking another step toward what is expected to be some restriction or the outright ban on the use of pre-dispute arbitration agreements in financial products and services.
On October 7, the Bureau will hold a public hearing in Denver, Colorado on the matter and perhaps issue a proposed regulation that will, after years of speculation, disclose exactly how broad the anticipated arbitration restriction or ban will be.
According to the Bureau's Blog, Director Richard Cordray will make a statement followed by testimony from consumers, industry representatives, and the public.
After conducting a study on the impact of arbitration agreements on consumers and reporting to Congress, the Dodd Frank Act provides: "the Bureau, by regulation, may prohibit or impose conditions or limitations on the use of an agreement between a covered person and a consumer for a consumer financial product or service providing for arbitration of any future dispute between the parties, if the Bureau finds that such a prohibition or imposition of conditions or limitations is in the public interest and for the protection of consumers."
IADA is one of twenty-seven state and metro dealer associations which has formed an informal alliance to participate in the rulemaking to ensure dealers' views are heard.
The group has retained noted automotive attorney Mike Charapp who has been monitoring the issue for nearly two years and will provide a detailed legal analysis of the regulation once it is issued.
IADA will keep you posted on developments on this important issue.
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UTILIZE CVR TO RENEW YOUR CUSTOMERS VEHICLE REGISTRATION
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IL Secretary of State has announced that due to the lack of a state budget, their office is suspending the mailing of vehicle registration renewal reminder notices to consumers, which will save the state approximately $450,000 per month. With this in mind, vehicle owners are encouraged to be mindful of their vehicle registration status.
While this may be a challenge for many consumers, you can turn it into a win for your dealership! IADA and CVR recommend you contact your customers at the 11 month anniversary of their vehicle purchase and remind them to renew their plates. Inform them that you can help them "skip the trip" to the Secretary of State's office by simply bringing in their current registration card to you. Many CVR dealerships are also making a plate expiration check (and when appropriate, the renewal offer) part of every service write-up process.
The CVR system allows you to quickly and easily process the renewal and hand your customer a new sticker right then and there for a fee of $7.50. The dealership makes a few dollars profit, but more importantly gains valuable exposure to your products and services, and is viewed as providing a convenient service to your customers. |
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LEGAL REMINDER-SALES TAX ON LEASE-END BUYOUTS
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When a lease customer elects to purchase his or her vehicle at lease-end, please remember that the purchase of the leased vehicle is a new, taxable transaction. When a customer buys a vehicle at the end of a lease, tax is due on the entire purchase price of the vehicle and the customer will not get credit for tax paid when he or she originally leased the vehicle, regardless of whether the customer leased the vehicle before January 1, 2015 and paid tax on the entire selling price of the vehicle or on or after January 1, 2015 and paid tax on the amount due under the lease contract. If you have any questions about this article, please contact IADA at 217-753-0220 or ldoll@illinoisdealers.com. |
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FLOOD TITLES-IMPORTANT NOTICE FROM SECRETARY OF STATE
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In an effort to protect Illinois consumers, the Secretary of State's Vehicle Services Department is screening title applications from vehicles that were registered in regions of Texas and Oklahoma that were declared disaster areas because of flooding and storm damage. Title applications submitted between May 4, 2015 and May 4, 2016 for vehicles registered in the affected counties will receive a flood title designation unless the title application is accompanied by a natural disaster disclosure statement signed by the previous owner declaring that he vehicle was not in a natural disaster area or was not damaged. The natural disaster disclosure statement is available here. The natural disaster disclosure statement is required for all vehicles registered in the following Oklahoma and Texas counties, click here.
Additionally, any vehicle listed in the National Insurance Crime Bureau's (NCIB) database of known flood damaged vehicles will receive a flood branded title. The NCIB database can be found here.
At this point, IADA has not received notification that similar documentation will be required for vehicles impacted by tropical storm Joaquin, but we notify you if a similar requirement is put in place for vehicles registered in South Carolina flood regions.
If you have any questions about this article, please contact IADA at (217) 753-0220 or ldoll@illinoisdealers.com. |
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LEGAL UPDATE-SCHOOL BUS PLATES
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The Secretary of State's Office has told IADA that it will be strictly interpreting the statute providing for a $13 registration fee for municipal busses to apply only to municipal busses used for general transportation. The $13 registration plates are not available for school buses, vans, or other vehicles sold for school-related transportation. Instead, purchasers of school busses, vans, and other vehicles are required to pay the normal registration fee. |
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